Coinbase files FOIA request to uncover SEC's ‘war on crypto’ cost

Coinbase is pushing to find out how much the U.S. Securities and Exchange Commission (SEC) spent on its enforcement actions against crypto firms. Chief Legal Officer Paul Grewal announced on March 3 that the exchange submitted a Freedom of Information Act (FOIA) request to the SEC, seeking detailed data on investigations and enforcement activities from April 17, 2021, to January 20, 2025.

The request aims to uncover the number of cases brought against crypto companies, the number of SEC employees and third-party contractors involved, and the total costs to taxpayers.

“We know the previous SEC’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs — but how much did it cost in taxpayer dollars?” Grewal said.

He also highlighted the need for transparency around the SEC’s Crypto Assets and Cyber Unit, established in 2017 to target fraudulent and unregistered crypto offerings. The unit was rebranded as the Cyber and Emerging Technologies Unit (CETU) on Feb. 20, 2025.

The SEC declined to comment on the request.

The FOIA request comes after Gary Gensler, the former SEC Chair known for his tough stance on crypto, resigned on Jan. 20, 2025 — the day Donald Trump began his second presidential term. Trump had previously vowed to fire Gensler if elected.

During Gensler’s leadership, the SEC pursued over 100 enforcement actions against crypto firms. However, since his departure, the agency has dropped several high-profile lawsuits, including cases against Coinbase, Kraken, Gemini, Yuga Labs, and Uniswap Labs.

The SEC’s lawsuit against Coinbase, filed in June 2023, accused the exchange of operating as an unregistered broker, exchange, and clearing agency. The case was permanently dismissed on Feb. 27, with the SEC agreeing to drop all litigation against Coinbase and its parent company, Coinbase Global.

Grewal emphasized that Coinbase is committed to seeing the FOIA request through:
“It may take time to get the full picture, but we’ll do what it takes for as long as it takes to get the answers.”